Basel III

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Timeline-Basel III Implementation, Prudential Regulators
Interim Final Rule Final Rule Implementation Phase-in
September 10, 2013 April 14, 2014 2015-2019
Timeline, CRD IV
CRD-IV proposed CRD-IV Entered into Force Full Implementation
July 20, 2011 January 1, 2014 January 1, 2019

Basel III is the latest standard developed by the In response to the financial crisis of 2008, the Basel Committee established new global standards on systemic risk and governance. These standards, which were issued in December 2010, are referred to as Basel III. Under Basel III, each of the the three Basel II pillars are strengthened, including:


The Basel Committee on Banking Supervision was established by the Group of Ten (G-10) central bank governors in 1974. Its primary purpose is to provide a forum for regular discussion of key banking supervision issues. The committee, whose functioning is provided by the Bank for International Settlements, meets four times a year, and reports to a joint committee of central bankers of member countries.<ref>Fact sheet - Basel Committee on Banking Supervision. Bank for International Settlements. Retrieved on September 6, 2011.</ref> For more information, see the committee's MarketsWiki page.

Although the committee does not possess any legal authority, the supervisory standards and best practices put forth by the committee encourage "convergence towards common approaches and common standards without attempting detailed harmonization of member countries' supervisory techniques."<ref>History of the Basel Committee and its Membership. Bank for International Settlements. Retrieved on September 6, 2011.</ref>

Basel III builds on the pillars of capital requirements, regulatory review, and disclosure. These pillars are outlined in Basel II, and are strengthened with the new regulations.

US Implementation[edit]

The proposed guidances outline an integrated regulatory capital framework that addresses shortcomings in regulatory capital requirements that became apparent during the recent financial crisis. The proposed rule would implement in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. <ref>Basel III. Federal Reserve. Retrieved on July 10, 2012.</ref>

The deadline for public comments was September 7, 2012. The regulators received approximately 1300 comment letters for the three proposed rules. These letters can be accessed HERE.

On July 2nd, 2013 the Federal Reserve issued final implementation rules. This was done at a open meeting the same day.

Implementation of Basel III

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Advanced Approaches Risk-based Capital Rule

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Standardized Approach for Risk-weighted Assets

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Final US Implantation Rules

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Capital Requirements Directive IV/ Capital Requirements Regulation[edit]

Like the United States, The European Union has moved to implement the Basel III accords. On July 20, 2011 the European Commission published its proposals in regards to implementing the Basel III standards. On April 16, 2013 the EU parliament passed the legislation. It entered into force on January 1st, 2014, with full implementation by 2019.

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Basil III and Related Documents[edit]




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